1374 Dawsonville Hwy

Dahlonega, GA 30533

$395,000D

4 bd · 2.0 ba · 1,536 sqft · Built 1940 · MultiFamily · Active · 147 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $3,185/mo
• Mortgage (P&I): −$2,071
• Tax + insurance: −$414
• HOA: −$0
• Vac / Maint / Mgmt: −$669
• Net cashflow: $31/mo
• Annual: $373/yr
• Cap rate: 6.39%
• Cash-on-cash: 0.34%
• DSCR: 1.01
• 1% rule: 0.81%
• Cash to close: $110,600

Investor read

• This is a 2 × 2-bed/1.0-bath units multifamily listed at $395k.
• At list price, monthly cash flow is $31 ($373/yr) — positive. Per door: $16/mo.
• The deal already cash-flows at list — no discount required.
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $318k (19.4% below list).
• It's been on market 147 days — a 12% lower offer ($348k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $318k (19.4% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $3k of loan paydown is wiped out by about $12k of value loss. Plan a longer hold.
• Location reads 65/100 on livability (#241 in GA) — a middle-class / working-renter tenant base. Strengths: crime A+, health & safety A+; Watch: schools D+, employment D, housing D.
• Lumpkin County (rural): math 38% / reading 45% proficiency, ranked #41 of 174 in GA (top 24%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Watch-outs: built in 1940 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 378 active listings in the ZIP; 1 comparable units currently listed for rent nearby; 277 units permitted in Lumpkin County in 2024 (0 in 5+ unit buildings).
• Lumpkin County population projected at +8% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• 4 sale attempts since 2y ago with the ask held roughly flat each time — persistent listings suggest the price (not the market) is what's stuck; bring a comps-based counter.
• Current owner paid $255k; list at $395k implies a 55% gain — meaningful room to come down on a strong offer.
• Cap rate 6.4% vs local median 3.1% in Dahlonega — top-decile yield for the area; either an underpriced asset or a hidden risk that comps aren't pricing in. Stress-test before assuming the spread holds.
• At $3,185/mo this rent would consume 52% of the median local household income ($74k/yr) (locally 710% of renters already pay >50% of income on rent) — very limited rent-growth headroom before tenants either downsize or default.

Questions for listing agent

• It's been on market 147 days. Have you received any prior offers? Is the seller open to a 19% concession, seller financing, or rate buy-down credit?
• Can we see the unit-by-unit rent roll, current vacancy, and any below-market leases? What's the average tenancy length?
• What capital expenditures (roof, boiler, parking lot, exteriors) have been made in the last 5 years, and what's planned in the next 2?
• Built in 1940 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• Why hasn't it sold? Are there any deal-killer items the seller is aware of (foundation, flood, title, zoning, code violations)?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• Schools are D-rated, which usually means shorter tenancies and higher turnover. Who's the typical renter profile here, and what's been the actual vacancy rate?
• The area grade is low — what's the realistic commute time and amenity access for the typical tenant pool here? Any planned neighborhood developments (good or bad) we should know about?